In the Good Governance Index – the Highest Rating to Lietuvos Energija

For the fourth year in a row, Lietuvos Energija has been recognised the most progressive state-owned company. In the good governance index of state-owned enterprises (SOEs) published by the Governance Coordination Centre (GCC), Lietuvos Energija was the only one of all SOEs that received the highest A+ rating.

 

The group of energy companies was given the most favourable rating for transparency, strategic planning and implementation, applied international accounting standards, social responsibility reports, annual reports, as well as for the achieved high rates of return. In the published index, activities of state-owned enterprises were rated in 2016.

 

“When compiling the index, state-owned enterprises are assessed according to their compliance with national and international good governance standards and criteria, OECD, as well as other good governance practices. I hope that this rating will contribute to the positive assessment of Lithuania by OECD and other international institutions. We will seek that progressive and transparent governance would further remain a crucial part of our Group’s daily work,” stated Mindaugas Keizeris, CEO and Chairman of the Board of Lietuvos Energija.

 

It is indicated in the report that the high rating was awarded to Lietuvos Energija for the implementation of independence principles: in its Supervisory Board, the Company has independent members and has elected an independent Chairman of the Supervisory Board. Besides, Lietuvos Energija remained the only one SOE that during the rating period had all three committees recommended by the Organisation for Economic Cooperation and Development (OECD): Appointment and Remuneration, Audit, and Risk Management.

The GCC, which supervises the implementation of governance and transparency principles of state-owned enterprises, reports that energy sector enterprises recorded high rate of return on equity (ROE), thus significantly increasing the portfolio results of state-owned enterprises. In 2016, the ROE of Lietuvos Energija amounted to more than 10 percent and exceeded the ROE level determined by the state (5.7 percent).

 

Lietuvos Energija is guided by the most progressive national and international practice, OECD recommendations, NASDAQ Corporate Governance Code, and guidelines of the Baltic Institute of Corporate Governance (BICG) for state-owned enterprises. Lietuvos Energija grounds its social responsibility on the United Nations Global Compact principles, thus contributing to the implementation of Sustainable development goals.